c-RTSE5V3-Reuters Staff

Russian rifle maker Kalashnikov is growing despite US sanctions

123%

The revenue of Russian weapons manufacturer Kalashnikov Concern increased 123% in 2016, reaching $320 million.

Published   |  Photo by Reuters/Staff
c-RTSE5V3-Reuters Staff
123%

Kalashnikov is making money despite US sanctions started in 2014, in response to Russia’s annexation of Crimea and military activity in Ukraine.

c-RTSE5V3-Reuters Staff
123%

The company was planning to expand its presence in the US when the sanctions were announced.

c-RTSE5V3-Reuters Staff
123%

Instead, Kalashnikov changed focus to other markets, including Asia and Africa, and from civilian to military customers.

c-kalash-RTR48IXQ-David Mdzinarishvili

Reuters/David Mdzinarishvili

c-RTSE5V3-Reuters Staff
123%

The change of focus happened just as countries in Asia started strengthening their militaries, in part in response to China.

c-RTSE5V3-Reuters Staff
123%

Still, Kalashnikov is not at the forefront of technology, and rivals like Heckler & Koch sell similar guns at similar prices in Asia and Africa.

c-RTSE5V3-Reuters Staff
123%

The company is trying to modernize. It recently announced combat drones capable of identifying targets autonomously, using artificial intelligence.

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